First Gen Corp. expects its upcoming hydro power projects to generate roughly P16 billion in net income annually once fully operational by 2031.
President and COO Francis Giles Puno shared the plan during the firm’s annual stockholders meeting. He said these earnings will come from 20-year contracts under the Department of Energy’s Green Energy Auction Program. The projected income is about three times the average contribution from its natural gas business between 2019 and 2024.
The company is investing around P62 billion—mostly from the partial sale of its gas assets—to build 2,000 megawatts of pumped-storage capacity. Key projects include Wawa and Pakil in partnership with Prime Infrastructure, plus the 120 MW Aya facility in Nueva Ecija.
Puno highlighted pumped-storage technology as vital for long-duration energy storage, able to supply power continuously for up to ten hours. He noted that suitable sites for such large-scale projects are rare and hard to develop, making these investments valuable and difficult to replicate in the future. He called this one of the company’s biggest strategic moves, strengthening its renewable energy portfolio.
Meanwhile, Chairman and CEO Federico “Piki” Lopez gave an update on internal matters at parent firm Lopez Inc. He said the board has withdrawn a resolution that sought to remove him as president. He views this as a positive step toward resolving family and group differences, while stating he remains ready for any outcome and will continue fulfilling his duties to all shareholders.
First Gen operates over 1,700 MW of renewable capacity across geothermal, wind, solar, and hydro plants. It also holds stakes in gas-fired facilities and Prime Infra’s hydro portfolio, supporting the country’s energy security.
